Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Sully- who wrote (49416)	4/3/2002 11:11:24 AM
From: stockman_scott	Respond to of 65232

Massive Services Sector Expands By Atiya Hussain NEW YORK, April 3 (Reuters) - The massive U.S. services sector expanded for the second straight month in March, indicating the non-manufacturing sector is recovering, a report showed on Wednesday. The pace of activity in the sector moderated from the nearly 1-1/2-year peaks hit in February, but continued growth in new orders and a waning pace of job cuts suggest the non-manufacturing sector may see sustained growth. The Institute for Supply Management, an industry trade group, said its monthly non-manufacturing index slipped to 57.3 in March from 58.7 in February, against market expectations for a 57.0 reading. In February, the index surged well above expectations to its highest level since November 2000. ``It is a pretty good report. It is telling you there is a recovery, but the big question for the markets is how much of it is inventory related and how much of it is longer lasting,'' Carey Leahey, senior U.S. economist at Deutsche Banc Alex. Brown in New York, said. Many analysts are looking for the United States to shoot out of a mild recession, with annual growth in the first quarter expected between 5 and 6 percent. March marks the second straight month the index has stayed above the 50 mark, indicating expansion in a sector that includes everything from transportation to legal and financial services. The non-manufacturing sectors reporting the highest rates of growth in activity included legal services, retail and wholesale trade and health services, the ISM said. Industries reporting contracting activity in March were mining, utilities, construction, finance, banking and communication. NEW ORDERS, EMPLOYMENT OFFER HOPE The ISM's new orders index suggest that growth will be sustained in the non-manufacturing sector. While the ISM's new orders index, a measure of future activity in the sector, fell to 54.9 in March, it stayed above the key 50 mark, indicating future growth continued strength in services. ``Considering March's relatively strong new orders index, it appears that the non-manufacturing economy may continue to grow in the coming months,'' said Ralph Kauffman, chair of the Institute for Supply Management's Non-Manufacturing Business Survey Committee. In February, the new orders index rose sharply to 57.3. A gradual rise in the ISM's employment index was a ``ray of hope,'' Kauffman said, but warned it was too early to say service jobs would increase before mid-year. The employment index, which rose to 45.5 in March, after dipping to 43.6 in February, remained under the key 50 level, indicating the sector continued to shed jobs, but at a slower pace. Service-sector employment shrank for the 13th straight month in March.

To: Sully- who wrote (49416)	4/3/2002 11:14:12 AM
From: stockman_scott	Respond to of 65232

US strategy against Iraq Jane's Security Digest 03 April 2002 Over a year ago, JID alerted subscribers of the imminent need for action to counteract the rise of Iraq (see JID 17 November 2000). Since then, Saddam Hussein has not only significantly reduced Iraq's international isolation, but has also clandestinely enhanced his arsenal of weapons of mass destruction, an issue causing major concern for policy-makers in Washington. Simultaneously, Saddam has been promoting his claim to the leadership of the Arab world, particularly at grass-roots level. Notwithstanding Washington's strong warnings, intensive diplomatic initiatives and military preparations, the Bush administration is still lacking a clear plan to deal with the Iraqi leader and his dictatorial Ba'ath Party regime. Amid the differences that exist among US officials (notably between the Department of Defense, which takes a hawkish approach and the more cautious State Department), as well as the evident lack of support from most European and Arab allies, a decisive US-led military strike against Iraq is starting to look less likely -- at least in the immediate future. Intelligence reports are warning that any unilateral military action to oust Saddam Hussein at this juncture risks destabilising the Arab world which would, in turn, have a potentially destructive impact on long-term US interests in the region and beyond. The key problem is that the Israeli-Palestinian conflict, coupled with the US-led war in Afghanistan, has already radicalised the region at the expense of the USA and its allies. Regional analysts are warning that in the present circumstances, a military offensive against Iraq would pose serious challenges to the stability of moderate Middle Eastern regimes, particularly Saudi Arabia and Jordan. It is also important to note that practically every Arab leader has expressed - at least in public - his vocal opposition to such action. End of the global coalition concept? A US-led attack on Iraq could also prove fatal to the notion of a 'global coalition' against terrorism, particularly since Russia and China cannot be expected to endorse such a move. It is widely feared that if the Iraqi army is destroyed, the consequent power struggle among Iraq's various religious and ethnic groups could lead to the 'Balkanisation' of Iraq, further complicating the security situation in this strategically important, but highly volatile region. Twin-track strategy Washington is currently following a two-track approach. In the short term, the Bush administration would very much like to see UN-sponsored smart sanctions imposed on Iraq, as well as the return of the weapon inspectors. In the longer term, US policy- makers will continue their efforts (both overt and covert) to oust Saddam. In the meantime, the USA plans to prepare the ground for possible military action against Iraq. It is currently exploring the possibilities of a launching a covert campaign to topple Saddam's regime. Finding another opportunity to win back waning US support, the London-based opposition group, the Iraqi National Congress, has stepped-up its activities in recent months despite the row over funding with the US State Department earlier this year (see JID 11 January 2002).